Dynamic Relationship Between Net Income, Free Cash Flow and Investment Cash Flow of Business

• Main Authors: Chu, Wan-Yu, 朱婉瑜
• Other Authors: Ding, Cherng
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/w27v95

碩士 === 國立交通大學 === 經營管理研究所 === 107 === Business’solvency and value can be evaluated by free cash flow, that is , a corporate’s operation ability to make money and When repaying loan and encountering crisis, whether business has enough resource. However, free cash flow arise agent problems because Information asymmetry exist between manager and business owner, and they might have different intention toward benefit. As a result, manager might pursue their max profit, this is agent cost behind free cash flow and also made it a arguable issue. In hope of discover the dynamic relationship between net income, free cash flow and investment cash flow, this article is based on agent thesis and free cash flow hypothesis, and our empirical results show that Stocks Holding Ratio by Directors and Supervisors would influence the relationship and also changed by industries and business scale.